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Cloud services offer computer power or data storage via the Internet. IBM claims to be breaking
new ground in this space with the launch of its Smart Analytics Cloud, a set of technologies for firms that want to compile information across their organization. And the sector has been
gaining momentum with companies like
Microsoft(MSFT) and
Savvis(SVVS), which are all
pushing the technology as a way for firms to avoid the upfront costs of hardware and software.

There are, however,
question marks hanging over the cloud concept. Security and loss of data control have been cited as the biggest issues with the technology.

"There's skepticism among IT practitioners," said Kevin Bocek, director of product marketing at systems specialist
Thales. "It's an opportunity, but it's also a challenge."

In an effort to help make the technology more secure, internet giant
Amazon(AMZN) has started
offering virtual private network (VPN)-based access to its services. Companies like
AT&T(T) and
VMware(VMW - Get Report) are
pushing security as a major selling point of cloud technology, having recently
announced a major cloud computing partnership.

Service provider Savvis is also driving home the security story, having recently
expanded its alliance with
Cisco(CSCO - Get Report) to deliver what it describes as the "first enterprise-class Virtual Private Data Center (VPDC)."

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The Economist recently ran an online debate, "This house believes that the cloud can't be entirely trusted." More than half of respondents to the poll disagreed with the motion, spelling good news for cloud vendors in 2010.